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Boni Holds Some YBM Stocks in What's Called the "Street

Question 1

Multiple Choice

Boni holds some YBM stocks in what's called the "street name," which enables her broker to short her stocks.Her broker Brokerman helps Chini borrow those shares and short-sell them to Honey Bunny at $100 per share.When YBM declares a $1 dividend,then:


A) YBM pays $1 to Boni
B) YBM pays $1 to Chini,who passes it on to Boni
C) Brokerman pays $1 to Boni from his own money
D) Chini pays $1 to Boni
E) Honey Bunny pays $1 to Boni

Correct Answer:

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